Supreme Court Upholds Tax on Ink & Chemicals Used to Print Lottery Tickets

The Supreme Court has held that ink and chemicals used in the printing of lottery tickets are taxable under the Uttar Pradesh Trade Tax Act, 1948, characterising their transfer as a “deemed sale” concurrent with the lottery sale. 

A Bench of Justices J.B. Pardiwala and K.V. Viswanathan dismissed appeals by Aristo Printers Pvt. Ltd., affirming that when these materials are incorporated into lottery tickets, the property in them is transferred under a works contract. 

The Court clarified that even if the materials lose their original form during printing, the taxable event occurs upon their incorporation, making them liable under Section 3F(1)(b).